What is a Simultaneous Closing?

With a simultaneous closing, 2 transactions take place on closing day with regard to the subject property.

In the past, this transaction referred to a seller financing technique where the seller financing note is purchased at the closing table to allow the seller to obtain their proceeds quickly, rather than over a period of years.

In recent years; however, a simultaneous closing can also occur when an investor wholesales a property.  For example, buyer A enters into a sales agreement with seller to purchase seller’s property for $25,000.  Buyer A decides not to rehab the property, but instead, to sell to Buyer B for $30,000.  Sometimes, Buyer A will just assign or sell his contract to Buyer B; however, unless there is a provision in the contract permitting the Buyer to do so, Seller may not allow the assignment. That is when a simultaneous closing may be the solution.

Next, keep in mind that some states do not allow simultaneous closings and some title companies will not conduct them.

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